New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-04-27
DERTP1YTyG ARRO4D

Mr.. Goschen's policy is humdrum one as
he predicted it would lie. but only in the
European sense of commonplace finance He
has been urged by his colleagues to present at
all hazards popular budget and he has sue
cecded in doing so by suspending the current
arrangements for paying the principal Of the
National debt This is in accord with the
ideas ordinarily prevailing on thc Continent.
where a reduction OF war debts is never under
taken seriously. European fnancicrs may not
go TO the length of pronouncing an enormous
debt a national blessing but they are in dc.
spair when they contemplate the possibility
Of liquidating one. They content themselves
with the elastic generalization that it is mex
pedicnt to increase taxation for the sake OF
reducing debts which were contracted on far
easier terms than they can get money now for
paying them. While this has been the Eu
rOpean theory it has not been the English
practice during recent years. Under arrange
ments favored by Sir Stafford Northcotc and
Mr.. Gladstone, gradual process of debtpaying
by the creation OF terminablc annuties and
sinking fund has been in progress. This move
ment Mr.. Goschen proposes TO retard, il not to
interrupt altogether. by reducing current rates
of taxation at the expense Of the sinking fund.
England's national debt two centuries ago
was something over S3,0O0O00 AT the close
Of the American War a century later it had
risen to $1,215, 100000. and when the Ma.
polconic wars ended it exceeded 81 300 900 900
Even when the Crimcan War had been fought,
the aggregate had shrunl to S4,OlO.O0O,OOO;
and from that period the reduction, while very
slow, has been uninterrupted. When tho
mkt il, bo
expectation Of the Chancellor Of the Exchequer
was that in twenty years 1865, 100000 would
be paid off by the operation Of the new sinking
fund Under a settlement effected by Sir
Stafford Northcote in 1875, the annual charge
or expense Of the debt was fixed at $4,000
600, and the process Of moderate debt reduction
under easy conditions was carefully regulated.
The revised system sanctioned four years ago
provided for an extension Of the series Of
tcnminable annuitics. whereby the rate of debt.
paying was materially accelerated. The debt
at present amounts to $3,7lO0OO,000, the re-
ducton during the last decade exceeding
$15O,OO0,OOO. This result, while insignificant
in comparison with American achievements in
debt-paying, has justified the predictions Of the
fnancicrs who have devised gradual and easy
process of reduction Two principles have
been generally accepted in England as funda-
mental in national finance. The first is that
each generation must pay as it goes, settling
the bills for every new war itself and not
hcaping up burdens for the future and the
second is that national debts must he steadily
scaled down. and that the process of reduction
must never be interrupted
Mr.. Goschen has considered the times to he
too hard to admit of the continuance of the
sinking fund arrangements ordered by the late
Lord Iddcslcgh He makes a bid for i'm
mediate popularity with taxpayers by cutting
down the income tax and is content TO suspend
the operation of an economic policy which, as
Mr.. Gladstone states, has received the un-
broken support Of all financial authorities. II
is a departure from honorable and prudent
methods OF national finance, which in the in
tcrcst of common civilization is to be dcplored
albeit it may he useful for party purposes.